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Our Process

Escrow Settlement Services

The escrow Settlement Process was developed to help facilitate the sale or purchase of your home.

The Escrow Agent, such as a Title Company, accomplishes this by:

  • Acting as the impartial “stakeholder,” or depository of documents and funds.
  • Processing and coordinating the flow of documents and funds.
  • Keeping all parties informed of progress on the escrow.
  • Responding to the lender‘s requirements.
  • Securing a title insurance poficy.
  • Obtaining approvals of reports and documents from the parties as required.
  • Prorating and adjusting insurance, taxes, rents, etc.
  • Recording the deed and loan documents.
  • Maintaining security and accountability of monies owed and owing as part of the escrow process.

What is an Escrow and Why is it Needed?

An escrow is an arrangement in which a disinterested third party, called an Escrow Agent, holds legal documents and funds on behalf of a buyer and seller and distributes them according to the buyers and seller’s instructions.

People buying and selling real estate often open an escrow for their protection and convenience. They rely on the escrow agent to carry out faithfully the terms of the sales agreement and lender’s instructions.

An escrow is convenient for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments & funds, deeds, and many other items. using the escrow holder as the central depositing point. If the instructions from all parties to an escrow are clearly drafted, fully detailed and mutually consistent, the escrow holder can take many actions on their behalf without further consultation. This saves much time and facilitates the closing of the transaction.

Who May Hold Escrows?

The licensed Escrow Agent may be any disinterested third party. There are two important reasons for selecting an established escrow title insurance company such as Keystone Title Agency, One is that real estate transactions require a tremendous amount of technical experience and knowledge to proceed smoothly. The other is that the Licensed Escrow Agent will be responsible for safeguarding and properly distributing the proceeds from the purchase. Licensed Escrow Officers with established Title Agencies are experienced and trained in real estate procedures and title insurance practices.

What are Escrow Instructions?

Escrow instructions are written documents, signed by the parties giving them, which direct the escrow officer to complete specific steps so the escrow can be closed.

What is Closing the Escrow?

Once all the terms and conditions of the instructions of both parties have been fulfilled, and all closing conditions satlsfled, the escrow is closed and the safe and accurate transfer of property and money has been accomplished.

Why Is Impartiality Important?

A Licensed Escrow Officer must remain completely impartial throughout the entire escrow process She or he will normally adopt a courteous but rather formal manner when dealing with parties to the escrow, keeping conversation to the matters at hand in the escrow. This formal behavior is meant for the benefit of all concerned since the Licensed Escrow Officer must follow the instructions of the purchase agreement and lender‘s instructions, if any, without bias.

What Does Each Party Do in the Escrow Process?

The Seller

  • Executes and deposits all documents with the escrow agent.
  • Deposits any other required documents such as tax receipts, addresses of mortgage holders, equipment warranties or home warranty contracts, etc.

The Buyer

  • Wires the funds required, in addition to any borrowed funds. to pay the purchase price to the escrow agent.
  • Executes mortgages necessary to secure loans.
  • Orders any inspection reports, surveys, hazard insurance, etc. called for by the purchase and sale agreements.
  • Fulfills any other conditions specified in the sales contract and/or by the lender.

The Lender (if applicable)

  • Wires proceeds of the loan to the Escrow Agent.
  • Directs the escrow agent on the conditions under which the loan funds may be used.

The Escrow Agent

  • Creates a file upon receiving a fully executed purchase and sales agreement and/or lender‘s instructions.
  • Orders a search to prepare a commitment for Title Insurance.
  • Orders all necessary payoff statements.
  • Satisfies all requirements to clear the title.
  • Prepares all necessary documents incidental to insuring title.
  • Prepares closing statement.
  • Reviews and explains all closing documents to applicable parties
  • Obtains all necessary signatures, funds, and documents to close the transaction.
  • Records and delivers all necessary documents.
  • Disburses the funds according to the parties and/or lenders instructions.
  • Issues the Title insurance Policy to the purchaser and /or the lender.

What Do I Need to Bring to Closing?

You will need to bring copies of a valid lD (driver’s license] state lD, US. passport. etc) for each person who will be signing documents. Some lenders require 2 forms of lD, so bring a second form, just in case. This second lD could be a work lD, school lD, or a social security card.

The buyer will also need to bring their Homeowners’ insurance declaration page and proof of wire transfer. For your protection, we only accept monies in the form of a wire transfer. You will need to initiate the wire at least one day prior to closing appointment to ensure the smoothest closing.

What Does the Title Agency Do at The Closing?

The closing will consist of the funds from all parties to be disbursed in accordance with the Closing Disclosure and/or ALTA Settlement Statement. KeyStone Title Agency is a neutral third party that will handle these transactions and file the necessary paperwork: deed, mortgage documents, etc. with the Clerk of the Circuit Court.

What Happens After Signing the Documents at Closing?

After your lender approves the Signed documentation, KeyStone Title Agency will record the deed and any mortgage at the county recorders office where the property is located. Keystone Title Agency will then pay all recorded unpaid associated with the transaction with the allocated funds. The new home is officially transferred to you, the new owner.

At Keystone Title Agency, we:

  • Create a file upon receiving a fully executed purchase and sales agreement and/or lender’s instructions.
  • Order a search to prepare a commitment for Title Insurance.
  • Order all necessary payoff statements.
  • Satisfy all requirements to clear the title.
  • Prepare all necessary documents incidental to insuring title.
  • Prepare the closing statement.
  • Review and explain all closing documents to applicable parties.
  • Obtain all necessary signatures. funds and documents to close the transaction.
  • Record and deliver all necessary documents.
  • Disburse the funds according to the parties and/or lender’s instructions.
  • Issue the Title insurance Policy to the purchaser and/or the lender.

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